Housing agency repays $771,000

By Jim Dooley
Advertiser Staff Writer

The state housing agency has repaid $771,000 that federal officials say was improperly spent.

The U.S. Department of Housing and Urban Development announced yesterday that the money has been reimbursed by the Housing and Community Development Corp. of Hawai'i.

HUD Assistant Secretary Michael Liu first demanded that the money be returned in 2002, saying former HCDCH executive director Sharyn Miyashiro violated federal conflict-of-interest rules when she awarded a non-bid housing repair contract in 2000 to Punalu'u Builders, a company partly owned by her ex-husband, with whom she had a continuing financial relationship.

After Gov. Linda Lingle was elected in November 2002, she said Liu agreed that the state could first attempt to collect the money from Punalu'u Builders before reimbursing HUD. But last month, Liu demanded that the money be returned within 60 days.

Punalu'u Builders official Dexter Sato said that no one from the state has contacted him and that his company would fight any collection effort.

The contract, for repair of termite damage at a Leeward Coast public housing project, was properly awarded and the work was done at a reasonable price, according to Sato.

Reach Jim Dooley at 535-2447 or jdooley@honoluluadvertiser.com.